Saudi Arabia’s Public Investment Fund (PIF) is making artificial intelligence a priority investment to boost its global presence and reinforce its goal of transforming the national economy. This approach, aligned with the goal of reducing dependence on oil, involves adopting emerging technologies and incorporating them into decision-making and asset management, a growing trend among Middle Eastern funds.
Technology shapes strategy and investment decisions
Saudi Arabia’s nearly $1 trillion sovereign wealth fund said on Wednesday artificial intelligence and automation have become embedded across “every layer” of its operation, reshaping not only what it invests in, but how it invests. The shift reflects a broader national ambition to integrate advanced technologies into the heart of the Saudi economy, and to redefine the region’s financial future not through oil, but through algorithms.
This technological shift isn’t limited to operational improvements, it also impacts the PIF’s role in the global market. By incorporating AI into its investment goals, the fund can identify emerging opportunities earlier, enabling it to assess market movements in real time and, with this information, respond more effectively and quickly to geopolitical or economic changes. These capabilities align with Saudi Arabia’s broader vision of positioning itself as a leader in digital finance and reducing reliance on traditional revenue sources.
AI revolutionizes PIF’s investment processes and capital allocation strategies
PIF’s strategy exemplifies a shift in the financial market, where the efficiency and predictive analytics capabilities provided by AI can generate significant competitive financial advantages. By automating complex processes and integrating machine learning models into risk assessment, the fund aims to optimize resources and increase the speed of relevant decision-making.
In its 2024 annual report, the Public Investment Fund (PIF) described AI as a catalyst that is fundamentally altering the way the state fund makes decisions, allocates capital and evaluates value. The report said the fund’s assets under management totaled 3.424 trillion riyals ($912.6 billion) at the end of 2024, lower than the 4.321 trillion riyals reported in June, with the change reflecting the use of different accounting standards.
Smart tools to maximize results and precision
PIF said it had implemented an AI-powered valuation platform to bring greater precision and speed to private market investment assessments. It has also developed a large language model for real-time investment reporting and is using AI tools for asset manager analysis and portfolio optimization.
This adoption of AI-based solutions is a strategy that is increasingly being used on a global scale to transform data into targeted advantages. In the Saudi case, technology is seen as an ally in exploring more complex and diverse investment opportunities, ensuring monitoring of global trends and enabling consistency amidst the volatility that the market may face.
Tasked with spearheading the kingdom’s economic diversification under Crown Prince Mohammed bin Salman’s Vision 2030 plan, PIF has moved well beyond its early holdings in public equities and infrastructure.
PIF leverages AI to boost global and national economic growth
In recent years, the fund has taken high-profile stakes in global brands, such as Uber UBER.N, Lucid Motors, and Nintendo 7974.T, while also backing sports ventures including LIV Golf and Newcastle United. At home, it has poured billions into giga-projects such as NEOM, the futuristic city on the Red Sea, and strategic sectors like tourism, logistics, and clean energy.
By integrating artificial intelligence into its operations, the PIF seeks to maximize and optimize the impact of its investments, both by strengthening global brands and by building relevant initiatives within the country. This combination of international reach and domestic development is crucial to consolidating Saudi Arabia as a hub of innovation and economic influence in the coming years.
GCN.com/Reuters